Delivered in various forms, Asset Management Software (AMS) gives business owners and asset managers the power to monitor and manage their entire catalogue of business assets in one centralised system. By using AMS, you’re able to maximise your Return on Investment (ROI) from each asset. As well as reduce excessive expenditure on equipment procurement and maintenance.
In this guide to asset management software, we’ll cover:
What is asset management software?
Asset Management Software is a solution designed to increase the usability of your business assets. Especially those that are critical for day-to-day operations. This includes tangible and fixed assets such as property and physical equipment. As well as digital and IT assets such as computers and software licences.
The best asset management software will provide features to improve the efficiency of your asset management. Such as:
- Inventory management
- Asset lifecycle management
- Preventive and predictive maintenance scheduling
- Asset tracking
- Reporting and big data analytics
By monitoring an asset's entire life cycle, you're able to build a system of valuable asset data. Once collected, the data allows asset managers to forecast asset acquisitions with better accuracy. As well as gaining a holistic view of where to reduce asset expenditure, such as procurement and maintenance.
Depending on the size of a business and its assets, the data collected by an AMS solution can be vast. With the right technology, AMS solutions are able to collect information such as real-time performance data. As well as user permission, total usage and scheduled maintenance. The latter being essential for avoiding unplanned downtime, which is costly for business operations and revenue.
By analysing the data, asset managers can determine each asset's Total Cost of Ownership (TCO). They can highlight if owning an asset outweighs the total running and maintenance costs. Making it easier to decide when, or if, an ageing asset should be replaced or disposed of. With the aim of maximising an asset's overall Return on Investment (ROI).
Typical assets that can be managed with AMS
It’s important for businesses to have complete knowledge of the assets they’re responsible for. This applies to small and medium businesses (SMBs) as well as large companies and enterprises.
Along with tools such as IT Asset Management and Enterprise Asset Management, modern AMS solutions provide the necessary functions to manage the majority of business assets. Such as:
Fixed asset management can be referred to as non-current asset management or long-term asset management. Long-live fixed assets include land, buildings, machinery, equipment and furniture.
The management of IT assets, also known as IT asset management, includes both your hardware and software assets. Such as computers, tablets, mobiles, digital files and software licenses.
Tangible assets are the physical assets that you have in your workplace. This includes fixed assets such as buildings and equipment. As well as assets such as cash, art, stocks and office supplies.
As opposed to your tangible assets, non-tangible assets do not have a physical presence. These include patents, trademarks, copyrights and permits.
What are the benefits and features of asset management software?
Implementing asset management into your business workflow can provide many benefits, including:
- Monitoring all assets in one centralised system
- Tracking the location and performance of assets in real-time
- Providing efficient and accurate financial planning
- Reducing procurement expenditure
- Implementing preventive maintenance to reduce costs and downtime
- Accurately measuring asset lifecycles from planning to disposal
As well as providing the benefits necessary for asset managers to take control of managing their business assets, AMS solutions are also packed full of different features. Such as:
Property, Facilities & Building Management
5 to 20% of overall fixed asset costs are contributed by properties, facilities or buildings. But, having the ability to perform effective property asset management can help. It can record purchase prices, appreciation, depreciation and the final disposal price of your fixed assets.
Most accounting standards, such as GAAP, IFRS, and BSI, require you to disclose all of your assets. To help, businesses will use an asset management solution to accurately track the value of their assets.
Apart from the financial requirement, properties and facilities require planned maintenance. As well as cleaning, security management, visitor tracking and energy management. An asset management system can help to schedule, record and report on these activities.
A modern property asset management software can provide a framework for the following:
- Develop and maintain an effective Fixed Asset Register
- Calculate the appreciation and depreciation of fixed assets
- Schedule, track and monitor maintenance activities
- Record cleaning activities
- Manage workplace layout
- Track visitors and occupants for safety and security
- Energy management of properties
IT Asset Management
Businesses can collect a lot of valuable data from their IT assets. Including real-time location, work order status, users, usage and license renewals. A cloud-based IT Asset Management system helps businesses to maintain an accurate IT Asset Register.
Along with hardware, a key asset included in most asset registers is software. Software Asset Management can help businesses to reduce the cost of software ownership. As well as optimise the number of software assets required, and maintain compliance with vendor contracts.
Tagging, Tracking and Reporting your hardware assets can help with their procurement and disposal. And, importantly, companies can understand which employee uses each asset.
A contemporary IT Inventory Management Solution can:
- Provide an on-demand view of your IT Inventory
- Manage entitlements and endpoints
- Know the usage data of your Cloud and On-Premise IT Assets
- Ring-fence your IT Network to be cyber safe
- Monitor compliance with software vendor contracts
- Easily know what IT assets you have and who are using them
Equipment and Machinery Management
Unplanned downtime in equipment and machinery can cost 3 to 18% of total revenue. So, businesses prefer to maximise the uptime of their machinery.
An asset management software provides a framework that can help schedule planned, preventative and reactive maintenance. This includes scheduling maintenance, organising internal and external engineers, and issuing work orders. As well as purchasing spare parts and planning for disposal. Asset management tools that specialise in equipment and maintenance management are called Computerised Maintenance Management Systems (CMMS).
Maintaining equipment and machinery, production targets and company targets are interlinked. Most cloud-based asset management tools help to organise your planned and preventative maintenance in such a way that it has minimal impact on production.
An effective technology used in most AMS solutions is the Internet of Things (IoT). This allows equipment and machinery to talk to each other. Transmitting operating conditions such as temperature, pressure, and service status. IoT devices can capture this data and provide insightful reports to increase the uptime of machinery.
An effective computerised maintenance management system will help you to:
- Schedule planned and preventative maintenance activities
- Assign jobs to internal and external maintenance engineers
- Order replacement parts
- Optimise maintenance costs
- Effectively manage reactive maintenance activities
- Improve age and uptime of your equipment and machinery
Stock or Inventory Management
The asset tracking function of an AMS is often used to track stock and inventory. As well as fixed assets such as buildings, properties and facilities. As the UK Accounting practice requires companies to declare their assets, this feature can be effective. Allowing businesses to record all their assets in one place; known as an asset register.
The technology used in tracking your stock and inventory can be RFID, Barcodes and NFC. Quite often, a hand-held scanner is used in reading an asset.
Typically, inventory is connected with users, location and projects. In some cases, it can be leased as well.
A modern cloud-based asset management tool allows companies to know the detailed status of all their stock and inventory and will help you to:
- Reduce or eliminate ghost assets
- Track leased and owned inventory
- Use RFID, Barcodes and Handheld scanners to Tag, Track and Report on your stock and inventory
Just like properties and inventory, modern asset management tools can help to track the location of fleet assets. The technology often used in tracking fleet assets is Global Positioning System (GPS). As well as digitalised tools such as Fleet Management Software.
Asset Management Tools specialised to manage fleet are called fleet asset management tools. These tools can provide businesses with a variety of vital data, such as the speed of each fleet asset. For example, defined rules and protocols can be scheduled and monitored for fleet vehicle operators.
A cloud-based fleet asset management solution will:
- Track the location of your fleet assets
- Track speed and traffic compliance of your fleet assets
- Optimise pick-up and delivery routine
- Reduce fleet maintenance costs